A bankruptcy court has approved a bid by US grocer Roundy’s to take over Rainbow Foods, a grocery chain owned by bankrupt food distribution company Fleming.
A judge certified the US$121.5m deal in a Delaware court on Wednesday. The deal includes the purchase of 30 Rainbow stores in Minnesota and one in Wisconsin. Twelve other stores have either closed or are expected to close soon.
Roundy’s, which has named Dale Riley as vice president of Rainbow, was the sole certified bidder for Rainbow, although Miner’s, another US grocer, submitted a bid just before the deadline. Miner’s bid was discarded, however, because of financial reasons, reported The Associated Press.